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IMF Cuts Forecast for Global Growth as Trade War Takes Toll

  • Fund downgrades world outlook for first time since July 2016
  • Turbulence in emerging markets another major factor, IMF says
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The IMF says the U.S-China trade spat is now taking its toll. Bloomberg’s Enda Curran and Tom Mackenzie report.(Source: Bloomberg)
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The International Monetary Fund said the world economy is plateauing as the lender cut its growth forecast for the first time in more than two years, blaming escalating trade tensions and stresses in emerging markets.

On the eve of its annual meetings in Bali, Indonesia, the fund on Tuesday projected a global expansion of 3.7 percent this year and next, down from the 3.9 percent projected three months ago. It was the first downgrade since July 2016.